SK Finance, a non-banking finance corporation (NBFC) focused on vehicle financing and secured business loans, has raised ₹1,328 crore through equity issuance.

The existing investors who had made fresh investment include Norwest Venture Partners, TPG Growth and Baring Private Equity India.

New investors who had participated in this round include Duro Capital, Axis Alternatives, Ananta Capital and Mirae Asset Venture Investments.

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Motilal Oswal’s private equity firm—MO Alternate Investment Advisors— has invested ₹415 crore for a minority stake.

DC Advisory India was the exclusive financial advisor for the transaction. Founded by Rajendra Kumar Setia in 1994, SK Finance has a diversified product portfolio consisting of commercial vehicle loans, car loans, tractor loans, two-wheeler loans and secured business loans. The company has grown at a 6-year CAGR (FY17-23) of over 40 per cent and has developed a diversified lending franchise which has helped it raise debt capital at regular intervals.

Rajendra Kumar Setia, Managing Director and CEO, SK Finance, said the primary capital infusion will be invested in brand building, distribution, technology and people.

Yash Setia, Whole Time Director, SK Finance, said the company will continue to focus on unbanked and under-banked and provide inclusive financial solutions to customers.

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Niren Shah, MD and Head of India, Norwest Venture Partners, said ever since the initial investment in 2017, SK Finance has delivered improved asset quality across business cycles and has invested in people, technology and infrastructure.

The company has presence across 12 States and Union Territories with a network of 500 branches and over 9,600 employees as of September-end.

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